Depreciation (Currency) - Explained
What is Depreciation?
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
What is Depreciation of Currency?
When the exchange rate for a currency falls, so that a currency trades for less of other currencies, we refer to it as depreciating or “weakening.”
Related Topics
- What Does it Mean to Dollarize
- Foreign Exchange Market
- Who Demands and Supplies Currency in a Foreign Exchange Market?
- Foreign Direct Investment
- Greenfield Investment
- Brownfield Investment
- Portfolio Investment
- Hedging
- Dealers in the Interbank Market
- Weak and Strong Currency
- Depreciation of Currency
- Appreciating and Depreciating Currency
- Exchange Rate
- Real Effective Exchange Rate (REER)
- Limited Flexibility Exchange Rate System
- Expectations about Future Exchange Rates Shift Demand
- Expected rate of return shift demand and supply for a currency
- Relative Inflation Shifts Demand and Supply for a Currency
- Purchasing Power Parity (PPP)
- Relative Purchasing Power Parity
- Law of One Price
- Burgernomics
- Balassa-Samuelson Effect
- Arbitrage
- Tobin Tax
- Foreign Exchange Market
- Foreign Exchange Contract
- Arbitrage
- Hedge
- Why Central Banks Care About Exchange Rates
- How Do Exchange Rates Affect Aggregate Demand and Aggregate Supply?
- What Causes Exchange Rate Fluctuations?
- Exchange Rate Policy
- Fixed Exchange Rate
- Floating Exchange Rate
- Hard and Soft Peg
- What is a Merged Currency?
- Capital Control
- Exchange Stabilization Fund